'Entry of low-cost cars won't affect three-wheeler sales'

CHENNAI: The economic slowdown and the launch of low-cost cars would not affect 

the three-wheeler market, says a top official of the 
city-based TVS Motor Co who 
expects a "quantum jump" in the company's three-wheeler sales and exports this fiscal. 

"We have started shipping out our two-stroke three-wheelers last fiscal to a couple of African countries. In two months, we will launch our four-stroke three-wheelers which would accelerate our export volumes," H.S. Goindi, head (sales and marketing) of TVS, told reporters. 

In March 2008, TVS forayed into the market with its 'King' three-wheelers, crossing swords with the market leader Bajaj Auto. 

"During the first eight months, the company sold around 4,800 units and this number will significantly go up in 2009-10," Goindi said. According to him, low-cost cars like Tata Nano would not eat into the market share of three-wheelers. 

"In terms of sales volume, three-wheelers sell around 100,000 units per annum. Further, other costs like ownership and operational will have to be taken into account if Nano is to cross swords with three wheelers," Goindi said. 

He said the company would launch a scooter and a motorcycle model this fiscal. TVS sold 22,975 scooters last month, up by 7,033 units from the year-ago period. 

"The newly launched TVS Streak scooter gave us good volumes. It should be noted that we are present in all the segments. Depending on the market segment, we can change our product plans," Goindi said. 

In 2008-08, TVS sold 635,940 motorcycles and 257,035 scooters as against 617,740 and 259,947 units respectively in the previous year. 

The moped sales stood at 436,767 units last fiscal, compared to 411,346 in 2007-08. Cumulatively, the company posted 3 percent sales growth at 13,29,742 units last fiscal, up from 12,89,033 units the year before. 

"The year that went by was relatively okay though there was no major market share gain. In these uncertain times it's difficult to make predictions. Everything hinges on the availability of the vehicle finance and the economy," Goindi added.

BUY NANO THROUGH US

Electric drivetrain or electric-version

Tata is also believed to be making an electric version of the Nano, called the E-Nano (reportedly with attached or sideby solar panels as well)[23][65] which might well turn out to be the "world's cheapest electric car"[66] which is more eco-friendly and has many enthusiasts and media for its support.[67] It's supposed to be as cheap as the conventional gasoline version. Tata is making the Nano compliant with export market regulations[68] and plans to export such a car worldwide, particularly to the UK and the rest of continental Europe,[69][70] the US,[71] and Australia.[72][73][74][75]

Economic Times reported[76] that the "electric Nano" "would still make good sense for economic, clean and green personal mobility in countries around the world." According to the Hamburg-based newspaper, Auto Bild, the E-Nano would be built in cooperation with the Norwegian electric car specialist, Miljøbil Grenland AS.[77] [78][79][80

Compressed-air engine

Tata Motors is working with a French firm on using compressed air as an energy source.[52] The company has tied up with Moteur Development International (MDI) for this purpose.[32]

Diesel

Wheelsunplugged.com reported that an anonymous source claimed a diesel variant would be available in September 2009

Technical specifications

According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car with a 623 cc rear engine and rear wheel drive, and has a fuel economy of 4.55 L/100 km (21.97 km/L, 51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/100 km on highways ( 25.974 km/L, 61.1 mpg (US), 73.3 mpg (UK)). It is the first time a two-cylinder non-opposed petrol engine will be used in a car with a single balance shaft.[48] Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano, with powertrain accounting for over half of them.[49] The project head, Girish Wagh has been credited with being one of the brains behind Nano's design.[49][50]

Much has been made of Tata's patents pending for the Nano. Yet during a news conference at the New Delhi Auto Expo, Ratan Tata pointed out none of these is revolutionary or represents earth-shaking technology. He said most relate to rather mundane items such as the two-cylinder engine’s balance shaft, and how the gears were cut in the transmission.

Though the car has been appreciated by many sources, including Reuters due to "the way it has tweaked existing technologies to target an as-yet untapped segment of the market", yet it has been stated by the same sources that Nano is not quite "revolutionary in its technology", just low in price.[51] Moreover, technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system[52] and an eco-friendly electric-version,[23] technologies on which Tata is reportedly already working, though no official incorporation-date for these technologies in the new car has been released.

According to Tata, the Nano complies with Bharat Stage-III and Euro-IV emission standards.[53] Ratan Tata also said, 'The car has passed the full-frontal crash and the side impact crash'.[54] Tata Nano passed the required 'homologation’ tests with Pune-based Automotive Research Association of India (ARAI).This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise & vibration and can now ply on Indian roads. Tata Nano managed to score around 24 km per litre during its ‘homologation’ tests with ARAI. This makes Tata Nano the most fuel efficient car in India. Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAI’s tests on its windshield. According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010.[55]
Rear mounted engine

The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500, another technically innovative "people's car". A concept vehicle similar in styling to the Nano, also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production.[56] The eventual new Mini was much larger and technically conservative. The independent, and now-defunct, MG Rover Group later based their Rover CityRover on the Tata Indica.

Tata is also reported to be contemplating offering a compressed air engine as an option.[

Model versions

At its launch the Nano was available in three trim levels:[9]
the basic Tata Nano Std priced at 123,000 Rupees has no extras;
the deluxe Tata Nano CX at 151,000 Rupees has air conditioning;
the deluxe Tata Nano TX at 135,000 Rupees has air conditioning, Yellow Colour Taxi Version;
the luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and central locking
the Nano Europa, European version of the Tata Nano has all of the above plus a larger body, bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standards and emission norms.

The base model will have fixed seats, except for the driver's, which will be adjustable,[clarification needed] while the deluxe and luxury models will get air conditioning and body coloured bumpers.[4

Price

Tata initially targeted the vehicle as "the least expensive production car in the world"[10] — aiming for a starting price of 100,000 rupees or approximately US$2000 (using exchange rate as of March 22, 2009) [11][12] 6 years ago, despite rapidly rising material prices at the time.[45]

As of August 2008, material costs had risen from 13% to 23% over the car’s development,[46] and Tata faced[citation needed] the choice of:
introducing the car with an artificially low price through government subsidies and tax-breaks[citation needed]
forgoing profit on the car[citation needed]
using vertical-integration to artificially boost profits on cars at the expense of their materials industries[citation needed]
partially using inexpensive polymers or biodegradable plastics instead of a full metal-body[citation needed]
raising the price of the car

Quality features

Japanese and Korean steel is used to make quality body panels.[44]

Cost Cutting features

The Nano's boot does not open, instead the rear seats can be folded down to access the boot space.[40][41]
It has a single windscreen wiper instead of the usual pair.
Some exterior parts of it are glued together, rather than welded.
It has no power steering.
Its door opening lever was simplified.[42]
It has 3 nuts on the wheels instead of the statutory 4 nuts.
It only has 1 side view mirror[4

Design

Ratan Tata, the Chairman of Tata Motors, began development of the world's cheapest production car in 2003,[36] inspired by the number of Indian families with two-wheeled rather than four-wheeled vehicles.[37] The Nano's development has been tempered[clarification needed] by the company's success in producing the low cost 4 wheeled Ace truck in May 2005.[36]

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw, The Times of India reported the vehicle is "a properly designed and built car".[38] The Chairman is reported to have said, "It is not a car with plastic curtains or no roof — it's a real car."[36]

To achieve its design goals, Tata refined the manufacturing process, emphasized innovation and sought new design approaches from suppliers.[38] The car was designed at Italy's Institute of Development in Automotive Engineering — with Ratan Tata requesting certain changes, such as the elimination of one of two windscreen wipers.[36] Some components of the Nano are made in Germany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and other technologies.[39]

The Nano has 21% more interior space (albeit mostly as headroom, due to its tall stance) and an 8% smaller exterior compared to its closest rival, the Maruti 800. Tata offered the car in three versions: the basic Tata Nano Std; the Cx; and the Lx. The Cx and Lx versions each have air conditioning, power windows, and central locking. Tata has set its initial production target at 250,000 units per year

Overview

The introduction of the Nano received media attention due to its targeted low price. The Financial Times reported[16]: "If ever there were a symbol of India’s ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of homegrown engineering, the $2,200 (€1,490, £1,186) Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity." The car is expected to boost the Indian economy, create entrepreneurial-opportunities across India[17][18], as well as expand the Indian car market by 65%[19]. The car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost[20][21] and eco-friendly initiatives which include using compressed-air as fuel[22] and an electric-version (E-Nano)[23][24]. Tata Group is expected to mass-manufacture the Nano, particularly the electric-version, and, besides selling them in India, to also export them worldwide[25][26][27].

Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in road-accidents every year[28]), and have also criticised the pollution that it would cause[29] (including criticism by Nobel Peace Prize winner Rajendra Pachauri[30]). However, Tata Motors has promised that it would definitely release Nano's eco-friendly models alongside the gasoline-model[31][32].

The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but increasingly violent protests forced Tata to pull out October 2008. (See Singur factory pullout below.) Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat.[33]. The company will bank on existing dealer network for Nano initially.[34] The new Nano Plant could have a capacity of 500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all the incentives offered by West Bengal government

Tata Nano

From Wikipedia, the free encyclopedia

The Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. It was first presented at the 9th annual Auto Expo on 10 January 2008, at Pragati Maidan in New Delhi, India.[4] Tata Motors commercially launched Nano on March 23, 2009, with bookings from April 9 to April 25.[5]The sales of the car will begin in July 2009,[6] with a starting price of Rs 115,000 (rupees), cheaper than the Maruti 800, its main competitor and next cheapest Indian car priced at 184,641 Rupees.[7][8][9] Tata had sought to produce the least expensive production car in the world[10] — aiming for a starting price of Rs.100,000 (approximately US$2,000 in March 2009).[11][12]

In early 2008 the news magazine Newsweek identified the Nano as a part of a "new breed of 21st-century cars" that embody "a contrarian philosophy of smaller, lighter, cheaper" and portend a new era in inexpensive personal transportation — and potentially, "global gridlock".[13] The Wall Street Journal confirmed a global trend toward small cars, which includes the Nano.[14]

"Nano" means "small" in Gujarati[15], the language of the founders of the Tata Group. In English, the prefix "nano-" is often used to mean small. This derives from the Greek root 'nanos', meaning dwarf.

Nano: Tata Motors may get 500,000 orders

Bookings for the Nano may range from 120,000 during the first two-week sales period before 100,000 buyers are allocated by lottery

Staff Writer, Bloomberg and PTI

Mumbai:Tata Motors Ltd, the maker of Jaguar and Land Rover luxury vehicles, may get as many as 500,000 orders for the Tata Nano five times more than it initially plans to sell, analysts said.
Bookings for the Nano may range from 120,000 during the first two-week sales period before 100,000 buyers are allocated by lottery, according to a poll of six analysts surveyed by ‘Bloomberg’.
Separately, Global rating agency Standard and Poor’s (S&P)on Wednesday downgraded Tata Motors’ credit ratings, saying the company was facing deteriorating cash flow and an adverse operating environment. 
The downgrade highlights deterioration in the company’s ability to repay debts in the long term.
The ratings remain on credit watch with negative implications, S&P said, adding that the company’s grades have been put on ‘B+´ (little assurance of long-term payment) from the earlier ‘BB-´ (moderate security for future payment). 
Meanwhile, National Insurance Co. Ltd chairman and managing director V. Ramasaamy said the insurance premium for the Tata Nano is likely to be Rs3,000-4000. The firm is one of the insurers that provide cover to commercial and passenger vehicles manufactured by Tata Motors. “...we will review the premium for Nano a year later,” said Ramasaamy.

Evaluating the Tata Nano

The Tata Nano. "The People's Car" is marketed as India's first major mark as the world's leading innovators and a key enabler for job and wealth creation across India. However, many protest, citing environmental concerns, urban congestion and forced displacement. I was recently provided materials from Tata Motors and it inspired the following exploration of the Nano from three business angles: risk/feasibility, market opportunity, and overall global impact.

From a feasibility perspective the Nano was quite risky . First, creating the Nano required 34 new patents and creating the lightest modern production car at half the price of the nearest competitor. Second, as with most new vehicles, Tata will take a loss on all vehicles, estimating break-even at six years, at best an early estimate. This huge investment has weakened their financial position. Last Tuesday, S&P lowered Tata’s ratings from B+ to BB- and indicated that further downward revisions were in the offing.

This pushes Tata’s bond ratings further into junk territory just as it is struggling to refinance $2 Billion of the $3 Billion bridge loan it took to finance the acquisition of Jaguar and Range Rover. Thirdly, it was not ingenuity that created the greatest impact on cost, it was politics. Tata convinced the Indian people to finance this project through manufacturing plant subsidies from particular states. One plant alone is creating 10,000 new jobs, and there are 3-4 plants expected to break new ground. The states were convinced, however farmers and activists staged violent protests at Tata Motor's Singur plant in February, alleging locals were forced off prime farmland to make room for the plant. The government says it has compensated most of the affected farmers; however, many vehemently argue they were forced into giving up their land and primary trade against their will. Tata has since moved the plant location.

The Market
From a market-driven perspective the opportunity is palpable. Small cars are currently in-vogue on the global scale. While India purchased over 7M scooters in 2000 compared to 1M autos the Nano's price enables it to directly compete with scooters. India is about to enter a mode of wealth creation greater than China, as it finally recognizes its population as an advantage, not burden. The largest group of baby-boomers ever are entering the workforce (average and median age is 25 in India, over 40 in China) creating a surge in demand that no economy has ever seen. Currently, there are only 6M car owners in India and 18M have the means to buy one. Amazingly, the Nano's price point increases that pool of potential auto owners by as much as 65 percent, to 30 million just as the target market dramatically increases.

Nano to drive into city today

Nano to drive into city today
4 Apr 2009, 0620 hrs IST, Melvyn Thomas, TNN

SURAT: The long wait for a glimpse of the world's cheapest car will come to an end for 

Surtis with Tata's Nano making its debut in the city 
on Saturday. Nano has been 
eagerly awaited here ever since it was unveiled by Ratan Tata at the 9th Auto Show in New Delhi in January. 

Preparations are in full swing at Tata Motor's dealership showroom at Puna 
Kumbharia to welcome the car being transhipped from Pantnagar in north India. 

"The dream car will arrive on Saturday at our showroom and a sea of humanity is expected," says director of Auto Point Tarun Ghura. 

Auto Point officials say they are flooded with queries from impatient customers. Till now, the dealership has sold over 300 booking forms in the last two days and the queue is only getting longer. 

"Till now, we have seen the little car on television sets and in pictures. It's time for us as well as the public to feel the real Nano," says Ghura. Nano CX model costing Rs 1.56 lakh would be on display and two more models would arrive in the next two days, he adds. 

Says Nano enthusiast Shailesh Mishra, "I have booked the car and am waiting to get a glimpse of it." Nano bookings will begin on April 9 and close on April 25. "We have no booking targets but are confident of receiving an unprecedented response to the marvel," enthuses Ghura.

Tata Motors unveils the People’s Car

Mr. Ratan N. Tata, Chairman of the Tata Group and Tata Motors, today unveiled the Tata ‘NANO’, the People’s Car from Tata Motors that India and the world have been looking forward to. A development, which signifies a first for the global automobile industry, the People’s Car brings the comfort and safety of a car within the reach of thousands of families. The People’s Car will be launched in India later in 2008.

Speaking at the unveiling ceremony at the 9th Auto Expo in New Delhi, Mr. Ratan N. Tata said, “I observed families riding on two-wheelers – the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family. Tata Motors’ engineers and designers gave their all for about four years to realise this goal. Today, we indeed have a People’s Car, which is affordable and yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions. We are happy to present the People’s Car to India and we hope it brings the joy, pride and utility of owning a car to many families who need personal mobility.” 

Stylish, comfortable 

The People’s Car, designed with a family in mind, has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Four doors with high seating position make ingress and egress easy. 

Yet with a length of 3.1 metres, width of 1.5 metres and height of 1.6 metres, with adequate ground clearance, it can effortlessly manoeuvre on busy roads in cities as well as in rural areas. Its mono-volume design, with wheels at the corners and the powertrain at the rear, enables it to uniquely combine both space and manoeuvrability, which will set a new benchmark among small cars. 

When launched, the car will be available in both standard and deluxe versions. Both versions will offer a wide range of body colours, and other accessories so that the car can be customised to an individual’s preferences. 

Fuel-efficient engine

The People’s Car has a rear-wheel drive, all-aluminium, two-cylinder, 623 cc, 33 PS, multi point fuel injection petrol engine. This is the first time that a two-cylinder gasoline engine is being used in a car with single balancer shaft. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. Performance is controlled by a specially designed electronic engine management system. 

Meets all safety requirements

The People’s Car’s safety performance exceeds current regulatory requirements. With an all sheet-metal body, it has a strong passenger compartment, with safety features such as crumple zones, intrusion-resistant doors, seat belts, strong seats and anchorages, and the rear tailgate glass bonded to the body. Tubeless tyres further enhance safety. 

Environment-friendly 

The People’s Car’s tailpipe emission performance exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint.
(For more information: www.tatanano.com ) 

About Tata Motors

Tata Motors is India's largest automobile company, with revenues of US $ 7.2 billion in 2006-2007. With over 4 million Tata vehicles plying in India, it is the leader in commercial vehicles and the second largest in passenger vehicles. It is also the world's fifth largest medium and heavy truck manufacturer and the second largest heavy bus manufacturer. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America. Tata Motors and Fiat Auto have formed an industrial joint venture in India to manufacture passenger cars, engines and transmissions for the Indian and overseas markets; Tata Motors also has an agreement with Fiat Auto to build a pick-up vehicle at Córdoba, Argentina. The company already distributes Fiat branded cars in India. Tata Motors’ international footprint includes Tata Daewoo Commercial Vehicle Co. Ltd. in South Korea; Hispano Carrocera, a bus and coach manufacturer of Spain in which the company has a 21% stake; a joint venture with Marcopolo, the Brazil-based body-builder of buses and coaches; and a joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market pick-up vehicles in Thailand. Tata Motors has research centres in India, the U.K., and in its subsidiary and associate companies in South Korea and Spain.

NANO'S SITE

http://www.tatanano.inservices.tatamotors.com

The Tata Nano: world's most affordable car set to hit the street in India

THANKS www.sciam.com

Tata Motors’ Nano, billed as the world’s cheapest (new) car, with base models selling for about $2,000 (or 100,000 rupees) is expected to sell like hot cakes when the company starts taking orders for it on April 9. 

The no-frills Nano has a two-cylinder engine mounted in the rear (like the classic Volkswagen Beetle), giving it a top speed of 65 miles (105 kilometers) per hour. The base model comes sans air conditioning and power windows, but those amenities are available in deluxe models. 

The Nano is aptly named as it stretches just a bit over 10 feet (3 meters) long, making it about four feet (1.2 meters) shorter than the 2008 Ford Focus hatchback, a compact car by U.S. standards. The ride weighs in at just 1,300 pounds (660 kilograms), about half of a Focus hatchback. This light weight partially explains the Nano’s low cost because fewer raw materials were needed to make it, according to the Chicago Tribune. A big bonus: Lightness also gives the Nano a very fuel-efficient 55 miles per gallon (24 kilometers per liter) of gasoline, Tata Motors says.

Small as they may be, the Nano gives millions of low-income people in India and other places a chance at buying a comparatively safe automobile rather than sticking with the two-wheeled motor scooters that whole families sometimes use to get around. Nearly 50 million people own such scooters in the subcontinent alone, according to the India Times, and as these drivers upgrade to four wheels, the Nano is expected to boost Indian auto sales by a soaring 65 percent.

That prospect has some environmentalists very alarmed, including the United Nations' top climate scientist Rajendra Pachauri who told USA Today that he's "having nightmares" about the Nano. Flooding the developing world's streets with carbon-emitting gas-powered vehicles is not exactly what green-conscious policy makers have in mind when it comes to stemming global warming. 

Nevertheless, Tata Motors says that the Nano will be the least-polluting car in India, and that it plans to debut even greener hybrid and electric versions of it. The company says it may begin exporting the car to other countries including the U.S. as early as 2011.

ScientificAmerican.com would like to thank atulskulkarni for Twittering us about the Nano after reading a run-up post yesterday to today’s unveiling of the Tesla Motors' all-electric Model S Sedan prototype.

The Nano, in Sunshine Yellow. It also comes in Racing Red, Summer Blue, Ivory White, Champagne Gold and Lunar Silver. Image Credit: Flickr / SanDev

PICTURE GALLERY